Question

Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking. All raw materials are introduced at the start of work in the Grinding Department. The Work in Process T-account for the Grinding Department for May is given below:

Work in Process—Grinding Department

Inventory, May 1	174,720		Completed and transferred to the Mixing Department	?
Materials	465,510
Conversion	217,470
Inventory, May 31	?

The May 1 work in process inventory consisted of 91,000 pounds with $117,390 in materials cost and $57,330 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 80% complete with respect to conversion. During May, 311,000 pounds were started into production. The May 31 inventory consisted of 89,000 pounds that were 100% complete with respect to materials and 60% complete with respect to conversion. The company uses the weighted-average method to account for units and costs.

Required:

1.	Determine the equivalent units of production for May.

  

2.	Determine the costs per equivalent unit for May. (Round your answers to 2 decimal places.)

  

3.	Determine the cost of the units completed and transferred to the Mixing Department during May. (Do not round your intermediate calculations.)

  

Answer 1

1
	Materials	Conversion
Units completed and transferred out	313000	313000	=91000+311000-89000
Ending work in process	89000	53400	=89000*60%
Equivalent units of production	402000	366400
2
	Materials	Conversion
Cost of beginning work in process	117390	57330
Costs incurred this period	465510	217470
Total costs	582900	274800
÷ Equivalent units of production	402000	366400
Cost per equivalent unit of production	1.45	0.75
3
Cost of the units completed and transferred out:
Materials	453850	=313000*1.45
Conversion	234750	=313000*0.75
Total	688600